Bradford's Pace Micro Technology is to create 50 new engineering jobs this year as it pushes back into profit.

The firm, which employs 948 workers at Salts Mill, created 50 engineering posts last year to build up its hardware and software development team.

Chief executive Malcolm Miller said today: "Being first to market means that we must invest in people. We expect to grow as digital broadcasting rolls out across the world."

He said market analysts were predicting that sales of digital receivers could double every two years. A total of eight million were sold last year and 11 million this year.

The sale of more than two million digital TV set-top boxes pushed Pace back into profit after making a £12.3 million loss last year.

The firm announced half-year pre-tax profits of £8.3 million along with a rise in sales to £99.4 million compared with £86.9 million last time.

City analysts are now predicting the company will make a year-end profit of £12 million compared to a £12 million loss in May last year.

The company was the first to sell set-top boxes in time for the launch of BSkyB's UK digital television service in October.

Pace, which also makes digital set-top boxes for BSkyB rival Ondigital, also announced it is to reduce the amount of analogue set-top boxes it produces.

Pace chairman Peter Morgan said today: "Pace returned to profitability in the last half of the year. The launch of digital TV in the UK has provided the impetus for this turnaround.

"The future remains dependent upon the success of broadcasters as they launch and develop their digital TV business.

"During the last six months we have established a wider customer base and there are clear signs that the adoption of digital TV is accelerating around the world.

"As a result, we can look forward with more confidence than was possible a year ago."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.